US Fed Meeting Key Highlights: Jerome Powell Hints Being Close To A Pause After Third Rate Cut In 2025
Nine of the 12 FOMC members voted to cut rates by 25 basis points. Here's a recap of all that happened.
US Fed Meeting Live: Key Highlights
Federal Open Market Committee lowered the benchmark interest rate by a quarter-point to a target range of 3.5%-3.75%.
Nine of the 12 FOMC members voted to cut rates by 25 basis points. Two voted to keep the rate unchanged and one called for 50 bps cut.
The Fed's Dot plot of rate projections shows the median official expected to lower rates by a quarter-point in 2026 and another quarter-point in 2027, the same as they projected in September.
Median inflation rate projected at 2.4% by end of 2026, down slightly from 2.6% forecast in September.
Median US GDP growth of 2.3% in 2026, compared with 1.8% previously.
Powell said the inflationary impact of Trump tariffs is expected to ease in the second half of 2026, with the first quarter likely marking the peak effect.
The Fed is now "within a range of plausible estimates of neutral, and leave us well-positioned to determine the extent and timing of additional adjustments" to rates, Powell said, indicating that FOMC may hit pause on further cuts in the next meeting during January 27-28.
"In the near term, risks to inflation are tilted to the upside and risks to employment, to the downside. A challenging situation," Powell said.
"I don't think that a rate hike is anybody's base case at this point," Powell said, shunning any hawkish cues.
The live blog has ended. Thanks for joining!
US Fed Meeting Live: Jerome Powell Ends Media Briefing
Federal Reserve Chair Jerome Powell has ended the final press conference of 2025, after the FOMC slashed interest rate for the third time this year.
Jerome Powell Speech Live: Leaving A Legacy
"I want to turnover my job to someone with an economy in good shape. I want inflation under control and strong labour market. All my efforts are to get to that place," Fed Chair Jerome Powell said, in response to a succession at the top job mid-2026.
US Fed Meeting Live: Wall Street Builds Up Rally
S&P 500 up 0.8%
Dow Jones up 1.2%
Nasdaq up 0.6%
Jerome Powell Speech Live: Tariff Driving Inflation, But May Ease
Federal Reserve Chair Jerome Powell said the inflationary impact of Trump tariffs is expected to ease in the second half of 2026, with the first quarter likely marking the peak effect.
Excluding tariffs, Powell noted that inflation is currently in “the low 2s” and emphasised that tariff-related price increases should remain a one-time adjustment.
Median Fed official sees inflation rate at 2.4% by end of 2026, down slightly from 2.6% forecast in September.
